The company's adjusted profit fell even though its biggestholding, insurer CNA Financial Corp, reported a 25percent jump in its operating profit due to higher premiumincome and lower non-catastrophe losses.

The hotel, energy and financial services conglomeratereported a 59 percent jump in profit as it booked a smallerimpairment charge in its HighMount Exploration & Production unitin the latest reported quarter.

Net profit rose to $282 million, or 73 cents per share, from$177 million, or 45 cents per share, a year earlier.

Excluding the charges, adjusted net income fell to $324million from $343 million.

Loews' net investment income fell 5 percent to $647 million.

Diamond Offshore, Loews' second-largest business, said onThursday quarterly profit fell due to previously disclosed cashflow issues for two of its customers.

Net operating income at CNA Financial rose to $269 million,or $1 per share, from $216 million, or 80 cents per share, ayear earlier.

Analysts on average had expected earnings per share of 76cents for CNA, according to Thomson Reuters I/B/E/S.

"We ... are encouraged by the margin improvement, theongoing favorable rate trends, and the continued shift in ourbook of business toward focus customer segments," CNA ChiefExecutive Thomas Motamed said in a statement.

Shares of Loews, which has a market cap of about $18.82billion, closed at $48.81 on Friday on the New York StockExchange. They have risen about 5 percent since the company lastreported quarterly results.

CNA shares closed at $39.69 on Friday. They touched theiryear high of $39.96 on Oct. 22.